Home Mortgage loan for an RV

[heavner]

Hi, I came across a YouTube video where the guy said if you are going to live in you RV you can finance it with a home mortgage loan. He said his monthly payment is $200. He lives in California. Just wondering if anyone has heard of doing this?

 

[mr_elijah_gardner]

I don't know about a "mortgage" on a motorhome. There are RV loans. You could also probably get a personal loan using the RV as collateral.

Maybe the youtuber got a loan from a mortgage company?

 

[Weight]

Yes, a mortgage is on real-estate. Not on a depreciating vehicle. If you own real-estate you could get a mortgage or second mortgage and use the funds to buy a motor-home.

 

[mpruet]

Hi, I came across a YouTube video where the guy said if you are going to live in you RV you can finance it with a home mortgage loan. He said his monthly payment is $200. He lives in California. Just wondering if anyone has heard of doing this?

Sounds bogus to me.

 

[DuneElliot]

You can get RV loans which are on similar [15 year] terms as a mortgage...but not actually a mortgage home loan.

 

[HerzeleidMeister]

And be careful what I've come across is many lenders for RV's will NOT give you a loan if you plan on living in the vehicle. Why is beyond me, seems someone living in the vehicle would be MORE inclined to pay the monthly loan amount, but that is just me I guess.

 

[John61CT]

Just like insurance, based on overall historical statistics. People on a downward financial slide have more troubles?

Also easier to repo sitting at a stable address.

 

[mayble]

The interest on an RV loan has been tax-deductible, like a mortgage.
RV loans often run 15-20 years, like a mortgage.
So for practical purposes, an RV loan is much like a mortgage but as it isn't secured with real estate, I don't think a lender would see it as such.

 

[Travelmonkey]

The interest on an RV loan has been tax-deductible, like a mortgage.
RV loans often run 15-20 years, like a mortgage.
So for practical purposes, an RV loan is much like a mortgage but as it isn't secured with real estate, I don't think a lender would see it as such.

I just read that interest on loans for RVs with motors built in (motorhomes) can deduct interest but trailers and fifth wheels you can't with the changes in tax law for 2018.  It also seems like many are going to have a hard time itemizing with changes/limiting of state income tax, property tax, and interest deductions.  I guess what I'm stating is I wouldn't just assume you can afford more than you can without running all of the numbers.

 

[mayble]

it's my impression that all deductions are up in the air at the moment, but prior to this anything that can be lived in - sailboat, trailer, motorhome, etc - as long as it has basic facilities is considered a dwelling and eligible for the home interest deduction
now?  who knows?  i've had to put blinders on to most things that don't impact me directly, just for my own sanity.
yes, do your own research

 

[Travelmonkey]

No, I don't think all deductions are up in the air, but I'm not an accountant... The prior test (or one of the requirements) for deducting interest for RV was it needed to have a bathroom (and I believe a kitchen).

I think the bigger issue people are going to find in 2018 is it will make more sense to stick with the standard deduction than to itemize. The standard deduction has almost doubled to $12k per individual ($24k per couple). The big deductions for most people that itemize are mortgage interest, state income tax and property tax. These deductions have been limited so it becomes harder to have enough deductions to make itemizing work. And if you are sticking with the standard deduction, it doesn't matter if your interest could be deductible...

 

[OnaRollabout]

I am a CPA. You have been able to deduct on schedule A the interest on any RV that has a bed and bathroom but you must itemize to use the deduction. The process is you total up your itemized deduction and compare it to your standard deduction and you take whichever one is greater. As on 2018 the new tax law increases the amount of the standard deduction making it much less likely the Itemizing your deduction will lead to a higher deduction than just taking the standard deduction.
The current (2018) standard deduction is $12,000 if your single and $24,000 if your married. Thus your itemized deduction needs to be higher to take it instead.
What are itemized deductions? The biggies are mortgage interest (and RV interest); Real estate taxes paid; charity given. (The deduction for state income taxes paid was eliminated.) Thus if you live in an RV full time and have no other property, unless you are extremely generous, you will likely not itemize, thus the interest on the RV would not help you.
-Dave

 

[Tony's Dream]

It depends on the bank and the amount of the RV. You are either getting a mortgage loan and using the funds to buy the RV out right......or you are buying the RV and using the house as collatoral. If you are spending $100-150,000 on an RV, getting a morage would probably be cheaper becaues you may be paying less interest. RV's don't hold their value over the long term...so interest rates tend to be higher because the risk is higher.

 

[jacqueg]

https://rvpioneers.com/rv-financing/finance-an-rv-as-a-primary-residence/

How to finance an RV as a primary residence.

As long as the IRS allows people to claim an RV or a boat as a primary residence, there will be lenders who will offer these deals. Depending on your particular circumstances, it may or may not makes sense for you to do this,.

 

[Freelander]

Well my RV loan will be payed off in 5 years, but a house loan can last for 30 years.